Home Buying in Stuarts Draft>Question Details

Ana, Home Buyer in Waynesboro, VA

Me and my husband are looking to buy a house or trailer but we dont have really good credit hes only been working for about 1yr 1/2 what would be

Asked by Ana, Waynesboro, VA Tue Jan 19, 2010

ther best thing to do? keep looking or settle for a appartment??

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If you're considering buying a trailer (the politically correct term is mobile home!) or manufactured home, there are a limited number of commercial lenders, and they typically lend only on newer homes. And that's both good and bad news.

Bad because it limits your conventional financing choices.

Good because there are other alternatives, such as owner financing. That's far more common with mobile and manufactured homes than with stick-built homes. Reasons: The dollar amounts often are smaller, and a greater number of purchasers of mobile and manufactured homes seem to have had some credit issues.

You may also be able to buy with investor assistance. There's a technique called a "Lonnie Deal" (named after a Virginia Beach investor named Lonnie Scruggs). The strategy, in brief, is that the investor comes in, buys the home for cash, marks the price up a bit, then sells it to you on terms.

Example: An investor (perhaps with your input and guidance) finds a home for sale. The owner is asking $7,000. The investor buys it for $4,500, all cash. He puts $750 worth of repairs into it. He sells it to you for $9,000. He collects $1,000 down from you, and you finance the rest ($8,000) for 5 years at 12.75% interest. Your monthly payments would be about $181, plus any ground rent or land lease. You'd have an affordable home. The seller would have sold his home. And the investor would make a nice profit. (I did a Lonnie Deal just a few months ago. The seller was happy and the buyer--who'd had a home foreclosed on about a year ago--was delighted.)

And mobile and manufactured homes qualify for the first-time home buyer tax credit so--if you act quickly--you could qualify for that, too.

Hope that helps.
1 vote Thank Flag Link Tue Jan 19, 2010
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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Ana, this is a question we're hearing a lot locally. The best thing you can possibly do is sit down with a qualified mortgage broker and see what you can borrow as everything stands now. Even if your credit score is not so hot today, many brokers are able to help you formulate a plan to get your credit score up to the standards you need to qualify for a home. Something we do here at Help-U-Sell is help pull that information together and formulate a real estate plan to help make finding that home a much friendlier process. Let me know what other questions I can help you with or if you would like to talk about a real estate plan for you. Thanks!!
1 vote Thank Flag Link Tue Jan 19, 2010
Hi Ana, it depends on your definition of "really good credit". Although the credit and qualifying guidelines have tightened up recently, there may be some options available to you. VA and FHA (generally) are now requiring at least a 620 credit score (some allow less, but you'll pay a higher premium). VA offers 100% financing, FHA requires 3.5% down. Your best bet is to speak with a well qualified mortgage specialist to analyze your credit and ability to purchase. Things to consider are - what items are negatively impacting your scores? and can you fix them? Do you have a down payment available? Does your income qualify? etc. Your mortgage officer should be able to help you with all of this. Let me know if you have any other questions!
1 vote Thank Flag Link Tue Jan 19, 2010
We have a house thats going to be rehaded... 84 Jonhson Si., Craigsville. We are an investment firm that will hold a note/mrtg for you given a down payment. So email me soon if interested. mnitti12@gmail.com
Thanks
Mike
Bayside Cap.
0 votes Thank Flag Link Sun Jan 22, 2012
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